Study On The Relationship Between Urbanization And Industrial Upgrading In Shanghai

After the financial crisis, Chinese economy presents a new normal.The economic structure is upgrading, from elements driven andinvestments driven to innovation driven. It leads to more fiercecompetition in the international market and the domestic market. Itmakes the operation of a large number of domestic firms which are shortof funds or technology deteriorate, or even worse,it leads to thebankrupt of these firms. In order to adapt to the more and more fiercecompetition against this backdrop, industrial upgrading is imperative.While the level of urbanization is an important factor to affect theeconomy, it also has an important influence on the industrial upgrading.To be the most developed city in China, Shanghai has the highest levelof urbanization which is far ahead of other cities and regions in China.Influenced by the high urbanization level, the process of industrialupgrading in Shanghai is faster than the average level of the nation aswell. Then it is essential to know the relationship between urbanizationand industrial upgrading in shanghai to promote industrial upgrading.Based on the purpose above, this article will analyze the intrinsicrelationship between urbanization and industrial upgrading fromthe perspective of urbanization. First of all, according to the relevant dataof shanghai, industrial upgrading will be divided into two parts toanalyze the characteristics and trend of the industrial upgrading inShanghai: upgrading of industrial structure and intra-industry upgrading.We also analyze the current situation and problems of urbanization inShanghai from the urbanization rate point of view at the same time.Secondly, analyze the relationship between urbanization and industrialupgrading in the theoretical analysis through the previous study on thecurrent situation about urbanization and industrial upgrading and basedon the accepted research conclusion. Finally, this article will choosereasonable index and method to explain the relationship betweenurbanization and industrial upgrading with the empirical analysis. The innovation point of this article is that this article studies intra-industryupgrading in detail and use total factor productivity to measureintra-industry upgrading, then analysis the relationship betweenintra-industry upgrading and the quality of urbanization.We can get following conclusion through theoretical andempirical analysis from this article: It should be mutual influence andinteraction relationship between urbanization and industrial upgradingand they should have the same trend of development. However, at thepresent stage of the urbanization and industrial policy in shanghai,first, from the perspective of relationship between urbanizationand upgrading of industrial structure, the upgrading of industrialstructure can promote urbanization rate, but it can’t be true conversely.Second, from the perspective of relationship between urbanizationand intra-industry upgrading, the improvement of the quality ofurbanization can lead to intra-industry upgrading, but intra-industryupgrading can’t lead to the improvement of the quality of urbanization.From the comparision with the results of theoretical study, we canget a conclusion that currently Shanghai should promote the upgradingof industrial structure continuely. At the same time, we should pay moreattention to intra-industry upgrading. In addition, it is essential to focuson the transformation between the achievement of intra-industryupgrading and the productivity, then take some political measures tosolve the outstanding problems about urbanization in Shanghai so that itcan promote the quality of urbanization.